1.Using the income, utility, income loss due to sickness, and probability of sickness from the above example. Now consider the effect of partial insurance. You can get partial insurance,which would pay out $1100if you get sick, for a premium of $300. If you get this partial insurance, what would be your expected income?

a. (4900-300)*.8 + (4900-2400-300+1110)*.2 = 4342

b. (4900)*.8 + (4900-2400+1110)*.2 = 4642

c. (4900)*.8 + (2400+1110)*.2 = 4622

d. (4900-300)*.8 + (4900-300+1110)*.2 = 4822